Feeds

BT shares tumble on false Brown Net cuts story

We said the FT was wrong: we were right

  • alert
  • submit to reddit

High performance access to file storage

More than £2 billion was wiped off the value of BT shares yesterday after it was reported Chancellor Gordon Brown was to announce plans that would cut the cost of Net access in Britain. In the event, he didn't. He merely voiced his desire to see costs come down and to speed up the unbundling of the local loop. But a combination of political spin and media hype led to near panic on the stock market, causing BT's share value to crash. In an attempt to turn the tide, BT chairman Sir Peter Bonfield issued a statement attacking the Chancellor. He said: "Opening up our local access network to our competitors is an entirely separate issue. BT shareholders own the network and BT not only needs to be consulted but to agree any timetable with Oftel. "We have already agreed with Oftel a deadline of July 1, 2001 and there will be no change to this date without our agreement. That would anyway be a matter for Oftel and BT -- not for the Treasury. So Brown has to live with the sorry fact that his political intervention has made him deeply unpopular among thousands of small investors who saw the value of their personal savings plummet. Understandably, relations between BT and the Treasury chilled considerably in the wake of Brown's blunder. Treasury spinsters attempted to salvage what they could from the fiasco but by then, the damage had been done. It remains to be seen whether his intervention will result in any long-term damage. ® Related Stories Brown Net cuts story is false Brown to slash Net charges

High performance access to file storage

More from The Register

next story
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.